Subscribe to NikkoAM-ICBCSG China Bond ETF during the Initial Offering Period (IOP) via POEMS 2.0

  1. Login to your POEMS 2.0 account > Acct Mgt > Online Forms > IPO Subscription – Irrevocable Form
  2. Select the IPO that you wished to subscribe for
  3. Ensure that you read and agree to the prospectus, terms and conditions before you subscribe to the financial product
  4. Application will close on 12 November 2020, 5pm
  5. Ensure that you have sufficient cash in your POEMS 2.0 Account to settle for the application (inclusive of subscription amount, commission, transfer fee and GST) on settlement date (16 November 2020, 12pm)

Subscription Period: 26 October 2020, 9am to 12 November 2020, 5pm
Listing Date: 24 November 2020
Subscription price: SGD 1.00 per unit
Minimum Quantity Minimum of 1000 units

1000 units incremental subscription amount
Commission Fees: 0.08% or minimum SGD 8 (Subject to GST) for all account types
Transfer Fees: SGD 10 (Subject to GST) for Cash Management Account Type

Other Phillip Investment Account Types will not be subjected to the transfer fee charge
Allotment: Full allotment
NikkoAM-ICBCSG China Bond ETF

The NikkoAM-ICBCSG China Bond ETF, which will be listing on SGX, provides local investors with easy and convenient access to China government and policy banks bonds.

China’s bond market – with USD 15 trillion – is the second largest bond market in the world.

The inclusion of China onshore bonds into global bond indices is likely to attract about USD 280 billion of inflows into China onshore bond market in aggregate.

China bonds represent unique investment opportunity for a number of reasons:
  • The RMB is one of the four designated world reserve currency; USD, Yen, Euro and RMB
  • Diversification benefits
  • Benchmark yields are generally higher than equivalently rated bonds (Source: Bloomberg, 14 Sep 2020)

Instrument Type: Exchange Traded Fund (“ETF”)
Tracked Index: ChinaBond ICBC 1-10 Year Treasury and Policy Bank Bond Index
Exchange Listing: SGX-ST
Classification: Excluded Investment Products (EIP)*
Fund Currency: RMB
Dual Share Classes: RMB class units (listed with USD dual currency) – without dividends distribution*

SGD class units – with dividend distribution*
Different share classes are not cross-tradable
Trading Currency: RMB
USD
SGD
Dividend Distribution Frequency: SGD class units (semi-annual distribution)*

RMB class units (no distribution)*
Expense Ratio: Total expense ratio is capped at a maximum of 0.30% per annum*
Manager: Nikko Asset Management Asia Limited

*Please refer to the Prospectus for more information.

Key Attributes of the Index ChinaBond ICBC 1-10 Year Treasury and Policy Bank Bond Index
Number of Bonds 216 (as of 30 September 2020)
Average Index Coupon Rate 3.6% per annum (as of 30 September 2020

The average index coupon rate of the Index is not fixed and may differ from the actual distribution yield of ETF due to fund expenses and the price movement of underlying bonds
Average Rating A+
Bond issuers in Index
  1. China Ministry of Finance (42.6%)
  2. China Development Bank (29.1%)
  3. Agricultural Development Bank of China (17.1%)
  4. Export-import Bank of China (11.2%)

As of 30 September 2020

Date/Time Title Venue
5 November 2020, Thursday
08:00pm-09:00pm		 Curious about Nikko AM China Bond ETF

 Webinar

Call your trading representative or visit your nearest Phillip Investor Centres for further assistance.

Alternatively, you can chat with us using our Live Chat function, call us at 6531 1555, or email us at etf@phillip.com.sg to find out how you can participate in this initial offer.
For more information about ETFs, please visit https://www.poems.com.sg/products/etf/

Terms and Conditions

1 The subscription period for this ETF is from 26 October 2020, 9am to 12 November 2020, 5pm.

2 Online subscription form will close on the 12 November 2020, 5pm. No new application, amendment, and withdrawal are allowed after this deadline

3 All ledger-based accounts are allowed to subscribe for this ETF

4 Cash Trading Account (T) is not eligible to participate in this subscription

5 Only one application is allowed per account

6 Each ETF unit is priced at SGD 1 and minimum order quantity is 1000 units, at incremental order size of 1000 units

7 Commission fee will be a minimum of SGD 8 or 0.08%, whichever is higher of the application value (Subject to GST)

8 There will be an additional transfer fee charge of SGD 10 (Subject to GST) per application for Cash Management Account Type

9 Total Amount Payable are denominated in SGD. Settlement currency will be in SGD.

10 Sufficient funds (inclusive of commission, transfer fee and GST) must be in client’s trading account by 16 November 2020, 12pm

11 Application will be rejected if the account does not have/reflect sufficient funds after 16 November 2020, 12pm

12 ETF units will be credited to clients’ CDP or clients’ sub-account with Phillip Securities Pte Ltd by 24 November 2020

13 Client will receive the full allotment of the number of ETF units that they subscribed to

14 Client can start trading the ETF units after it is listed on SGX on 24 November 2020, 9am

Investments are subject to investment risks including the possible loss of the principal amount invested. You should read the ETFs’ prospectus and the accompanying product highlights sheets for key features and key risks and seek advice from a financial adviser ("FA") or you should assess and consider whether the ETFs are suitable for you before proceeding to invest in the ETFs. Listing on SGX does not guarantee a liquid market for the units of the ETFs, which may be traded at prices above or below its net assets value or may be suspended or delisted. Unlike unlisted unit trusts, investors cannot create/subscribe or redeem ETF units directly with the fund manager of the ETFs. Please refer to the Prospectus of the ETFs for more details.

Disclaimer

This advertisement is intended for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the product mentioned. It does not have any regard to your specific investment objectives, financial situation or particular needs. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in this advertisement are not necessarily indicative of future or likely performance of any fund. You should read the prospectus of the respective ETFs (which is available on websites of the issuers) and understand their structure and associated risks before deciding to invest. You may wish to obtain advice from a financial adviser before making a commitment to purchase any investment products mentioned herein. In the event that you choose not to obtain advice from a financial adviser, you should consider whether the investment product is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore.

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com